When you launch a new business, your priority is to get the word spread about your new enterprise and start taking in orders as quickly as possible.
Many new startup businesses will often invest a lot of capital, either from their own savings or borrowed from a bank or some other financial institution, so it is important that the business can start turning a profit soon in order to start paying back these debts.
These same businesses will want to spend as little as possible for obvious reasons, yet an alarmingly high number of startups fail within the first 18 months of getting started because they completely overspent their budget on things they didn’t actually need.
If you are about to launch an exciting new venture and have never run your own business before, here are dynamite tips to help you spend less money during those crucial early stages so that you have a higher chance of success!
Not everything has to be brand new
It’s a well-known fact that secondhand items are significantly cheaper than new ones. In some cases, you can often grab a bargain on items that haven’t actually been used by anyone and are simply old stock that has been priced to sell quickly.
Things like office furniture and equipment such as photocopiers, computer systems and even smartphones can be purchased cheaply secondhand, and are still classed as legitimate business expenses just like new items are.
For computer systems, if a few months down the line you find that you need to be running better hardware for certain applications, you could do things like upgrading the RAM and the hard drive (making sure you use a secure data destruction firm to destroy your old hard drive) instead of buying completely new replacement systems.
Don’t hire employees unless you really have to
It makes no sense spending money on hiring employees when you could just as easily sub-contract the work they do out to external service providers for a fraction of the cost!
For example, instead of hiring a receptionist to field calls and deal with your post each day, you could simply employ a “virtual assistant” to do the work for you and save a bundle of cash in the process!
Some new startup firms tend to pay for the services of people such as mentors, coaches and industry experts to help guide them onto the correct path, and whilst these services can prove to be beneficial, they should only be utilised when the need arises; in other words, don’t use them when you don’t need them.
Consider bartering with other firms
You would be surprised by the savings your startup business could make by simply bartering with other firms rather than paying them cash for their services! Let’s say that you run a web design business, and you normally pay for copywriting or content writing services for the websites you build.
Instead of paying for those services, you could simply agree to do some web design work for the copywriters in exchange for professional copy for your websites!